Diving into the world of digital marketing innovation, we’re thrilled to sit down with Milena Traikovich, a seasoned Demand Gen expert who has dedicated her career to helping businesses craft campaigns that attract and nurture high-quality leads. With her deep expertise in analytics, performance optimization, and lead generation, Milena offers invaluable insights into the transformative power of generative AI (GenAI) and augmented reality (AR) in advertising. In this conversation, we explore how these immersive ad formats are outperforming traditional static ads, reshaping brand perceptions, and driving results across the marketing funnel. We also delve into the importance of transparency in AI use and the balance between technology and human creativity in modern marketing.
How do GenAI and AR ads stack up against static formats in terms of capturing consumer attention and engagement?
The data from recent studies shows a clear edge for GenAI and AR ads over static formats. These immersive ads grab attention much faster because they’re interactive and dynamic, pulling users into an experience rather than just displaying an image. Metrics like time spent with the ad and interaction rates are significantly higher—sometimes double or triple those of static creatives. Engagement levels are also deeper; users aren’t just glancing and scrolling past—they’re tapping, swiping, and exploring. This creates a stronger emotional connection, which is a game-changer for brands looking to stand out in a crowded digital space.
What impact do these immersive formats have on brand recall, and can you share any standout examples of this effect?
Brand recall is dramatically improved with GenAI and AR ads because they create memorable experiences. When a consumer interacts with an AR lens or a personalized video, the brand sticks in their mind far longer than a static banner would. For instance, studies have shown that users exposed to AR ads can recall the brand up to 70% more effectively than with traditional formats. It’s not just about seeing a logo—it’s about living a moment with the brand, which makes the impression much more lasting.
Can you explain how GenAI and AR ads support brands across the entire marketing funnel?
Absolutely. At the top of the funnel, these formats build awareness by creating eye-catching, shareable experiences that cut through the noise—think AR filters or interactive videos that spark curiosity. In the middle, they nurture interest by offering deeper engagement, like virtual try-ons or immersive storytelling that keeps users hooked. At the bottom, they drive action; data shows higher click-through rates to websites and increased purchase intent because the experience feels personal and relevant. They seamlessly connect the dots from first impression to final conversion.
In what ways do these ads influence how consumers perceive a brand, particularly in terms of innovation or prestige?
Consumers often see brands using GenAI and AR as forward-thinking and premium. These technologies signal that a brand is on the cutting edge, willing to invest in creating unique experiences. Surveys indicate that people describe such brands as innovative and entertaining, which boosts their appeal, especially among younger demographics who value authenticity and creativity. This perception elevates the brand’s status, making it feel more exclusive and aligned with modern digital trends.
Why is transparency around AI use in advertising so crucial to maintaining consumer trust?
Transparency is everything because it builds credibility. When brands disclose they’ve used AI in their ads, it shows honesty, which consumers—especially Millennials—really value. Without that disclosure, there’s a risk of eroding trust; people feel misled if they later discover an ad wasn’t fully human-made. It’s about setting expectations and respecting the audience’s right to know, which ultimately strengthens the relationship between brand and consumer.
How do different age groups respond to transparency about AI in ads, and does AR play a role in shaping those reactions?
There’s definitely a generational split. Millennials tend to appreciate transparency and reward brands with positive sentiment when AI use is disclosed. Gen Z, on the other hand, can be more skeptical, sometimes questioning the authenticity even when brands are upfront. Interestingly, AR helps soften any negative vibes across both groups. The immersive nature of AR adds a layer of genuineness to the experience, making the AI aspect feel less intrusive and more like a creative tool.
From a marketer’s perspective, how is GenAI being used to enhance creativity rather than replace it?
Marketers see GenAI as a powerful ally, not a substitute for human creativity. It’s being used to speed up ideation and production—think generating multiple ad variations in minutes or personalizing content at scale. It frees up time for strategizing and refining the bigger picture. But there’s a strong belief that human oversight is critical to ensure the output aligns with brand values and resonates emotionally. GenAI handles the heavy lifting, while humans bring the heart and soul.
What concerns do marketers have about leaning too heavily on AI in advertising?
There’s a real worry about losing the human touch. Marketers are concerned that over-reliance on AI could lead to generic, soulless content or even misinformation if outputs aren’t carefully vetted. There’s also the risk of creating ads that feel too artificial, especially with photorealistic depictions that consumers often reject. The consensus is that AI should augment, not dominate, the creative process to maintain authenticity and avoid potential backlash.
What is your forecast for the role of GenAI and AR in the future of digital marketing?
I believe GenAI and AR will become foundational to digital marketing in the next few years, moving from nice-to-have to must-have tools. As technology advances, these formats will get even more sophisticated, offering hyper-personalized experiences that feel seamless and intuitive. We’ll see greater integration across platforms, making immersive ads a core part of every campaign. But the key to success will be balancing innovation with transparency and human creativity—brands that master this will lead the way in building trust and engagement.
